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International Claim Association
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ICA CALENDAR
LEADING THE WAY IN CLAIM EXCELLENCE
President’s Remarks
Kevin Glasgow
FLHC, FLMI
Munich American Reassurance Company
JANUARY 22-24, 2014
Winter Meeting
The Wigwam
Litchfield Park, AZ
MAY 7-10, 2014
Spring Committee Meetings
The Hilton San Destin Beach
Golf Resort & Spa
Miramar Beach, FL
SEPTEMBER 21-24, 2014
Annual Education Conference
New Orleans Marriott
New Orleans, LA
SEPT. 27-30, 2015
Annual Education Conference
The Mirage Hotel
Las Vegas, NV
OCTOBER 16-19, 2016
Annual Education Conference
JW Marriott Orlando Grande
Lakes
Orlando, FL
ICA NEWS
A quarterly electronic publication of:
International Claim Association®
1155 15th Street, NW, Suite 500
Washington, DC 20005
T: 202 452-0143
F: 202 530-0659
W: www.claim.org
DECEMBER 2013
Claims is an exciting and rewarding profession
and I can think of no other profession like it. We
deliver on the promises made by our companies
when policies are sold. In 2012, our industry
paid approximately $535 billion in life and
annuity contract payouts in the U.S. Another $66
billion was paid out in Canada, and the list goes
on. This is a tremendous amount of financial
protection, security, and compassion that we
provide to our policy holders. We have a lot to
be proud of as claim professionals.
As we know, with this excitement also comes
daily challenges and struggles as we strive to
efficiently and effectively deliver to our policy
holders. At the same time, we need to protect our
companies and policy holders from those who
would seek to defraud us. Keeping in touch with
industry trends and education is paramount to
meeting these challenges. The ICA is uniquely
positioned to provide claim professionals with
a world-class educational experience and networking forum.
I am excited to report that the 104th ICA
Annual Education Conference held in Chicago
in October was a resounding success! Over
Join us and Become a Fan.
500 delegates and more than 40 exhibitors who
support our industry attended the conference.
Delegates attended from the United States,
Canada, Europe, Asia, and Australia. The
conference held approximately 60 workshops
and roundtable discussions covering topics
such as unclaimed property, audits, litigation
management, and complex claims. In addition
to the formal workshops, the ICA also provided
a wonderful venue for networking and sharing
ideas with colleagues from around the globe. I
would like to thank all of those involved who
made this conference a success including the
committee members, committee chairs and cochairs, the Annual Conference Team as well as
Headquarters’ staff. As primarily a volunteer
organization, we rely on the expertise and efforts
of our members to insure exceptional content
and programs.
In closing I would like to invite you to attend
our 105th Annual Education Conference being
held in New Orleans, September 21 – 24, 2014.
Planning is already underway, so mark your
calendars. I look forward to seeing you there. 
Happy Holidays!
ICA would like to wish you a safe and happy holiday season.
International Claim Association
Ica news
Page 2 DECEMBER 2013
Law Enforcement Inquiry (LEI)
David W. Grannan, CFE
2014
Executive Committee
Officers
As of November 21, 2013, the Law Enforcement
Inquiries total 277. The requests keep coming
in pretty regularly. We are already over 2012’s
total, and continue to climb. It is very important
that you share this service with law enforcement
officers that you come in contact with during
your claim investigations.
I have received several e-mails from the
detectives that we run the LEI’s for. They report
finding coverage on a fairly regular basis. I have
not received any confirmation of life coverage
being the motive for the murder of an individual,
but those types of cases take time to investigate.
Please take the time to determine who is
receiving the Law Enforcement Inquiries in
your company and then ensure that individual
is acting timely on the requests. For more
information regarding the service we provide
to law enforcement or to refer a detective please
call David Grannan at (317) 715-7184 or e-mail
dwgrannan@goldenrule.com. 
President
Kevin Glasgow, FLHC, FLMI
Munich American Reassurance Company
President-Elect
David W. Grannan, CFE
UnitedHealthcare
Secretary
Rebecca L. Huerta, FLHC, FLMI, AAPA
Allianz Life Insurance Company of North America
Treasurer
Lester L. Bohnert, ALHC, FLMI
Modern Woodmen of America
Chairperson
Erin M. Worthington, CFE, FLMI, FLHC, ACS
All State Financial
Claim Q&A
THE LANGUAGE OF MEDICINE:
1. One true statement about a brain
tumor that is classified as a meningioma
is that a meningioma:
1. is more malignant than an
astrocytoma
2. is usually benign
3. arises from glial cells
4. never causes brain compression or
brain distortion
Chapter 10, Nervous System, page 357
LIFE AND HEALTH INSURANCE LAW
2. All states have adopted variations of
the National Association for Insurance
Commissioners (NAIC) model act on
uniform individual health provisions; the
NAIC Uniform Accident and Sickness
Policy Provision Law. Identify the
following as either Required Provisions
(R) or Optional Provisions (O) under the
law:
1. Backdating provision
2. Settlement Options provision
3. Guaranteed Insurability provision
4. Misstatement of Age provision
5. Accelerated Benefit provision
6. Free Look provision
7. Other Insurance provision
8. Notice of Claim and Proof of Loss
provision
Chapter 6, Insurance Products and Policy
Structure, pages 82-89
www.claim.org Questions provided by the
ICA Education Committee
Executive Committee
Immediate Past-President
Doris Erdman, ALHC, FLMI, ACS
Woodmen of the World Life Insurance Society
CLAIM ADMINISTRATION
3. Dental services are divided into
several categories. By definition, the
category of dental services that involves
the treatment of diseases of the bone
and soft tissues of the mouth is known
as:
1. Periodontics
2. Endodontics
3. Orthodontics
4. Oral Surgery
James H. Brown, ALHC, HIA, ACS, FLMI
Swiss Re Life and Health America, Inc
Chapter 12, Analyzing and Paying
Supplemental Medical Expense Claims, page
241
David Koth, ALHC, JD, CLU, ChFC, FLMI, CPCU
State Farm Insurance Companies
CLAIMS MANAGEMENT
4. Of the four management functions,
the primary function that precedes
and provides a basis for the other
management functions is:
1. leading
2. organizing
3. planning
4. controlling
Marc Carlson, FLHC, FLMI, FALU
Modern Woodmen of America
Chad D. Cunningham, FLMI, ACS
Munich American Reassurance Company
Daniel A. Hepner
Ameritas Life Insurance Company
Craig Williamson, CFE, ALHC
Farmers New World Life Insurance
Staff
Executive Director
Christopher M. Murphy
Membership and Event Manager
Darci Chuba
Chapter 1, Introduction to Claim Management,
page 13
Answers: 1 [2] 2 [Required 2,4,6,8;
Optional 1,3,5,7] 3 [1] 4 [3]
TEST YOUR
KNOWLEDGE
International Claim Association
Ica news
Page 3 DECEMBER 2013
104th Annual International Claim Association Conference
October 13th - 16th 2013 • Chicago Marriot Hotel
By: Natalie Lumsden, Sagicor Life Jamaica
This is a brief account of my recent attendance at the 104th International Claim Association Conference.
The conference more than met its goal of
providing attendees with an update on current developments in claims assessment.
True to its purpose, the conference provided research, education, and an exchange of
ideas relating to various aspects of claims
administration. The conference further
provided the opportunity for networking,
workshop sessions, and a host of excellent
exhibitors who serve our industry and were
on hand to share ways to help us serve our
clients better.
I was provided with a binder containing
an outline of the program, an envelope containing give-away tickets, and a personalised program of the sessions selected at the
point of registration. This was quite helpful,
as I was able to find meeting rooms and it
kept me organised. The speakers also provided notes. This allowed me to spend more
time listening rather than taking notes.
and problems from many areas: including a potential suicide – the mystery of a
missing man only for his bones to be found
in a shark’s belly and on an island a great
distance away from where the incident allegedly happened, the challenges of state
law versus federal law, beneficiary challenges with multiple marriages and our
own Jamaican tale of false death on the
Asian Sub continent.
Case Study & Workshop Sessions
Conclusion
These sessions created an opportunity for
greater interaction and participation. I found
these sessions to be quite meaningful, a fun
and creative way of learning. Cases were
discussed within each group with decisions
being compared and analysed openly by
the presenters and members. I found the
Advanced Claims Round table sessions to
be of the greatest highlight of the conference. It was indeed very thoughtful for the
conference coordinators to seek questions
from attendees at the time of registration
and only to turn up at such a world class
conference to see your questions among 40
others! I found the session to be insightful,
challenging, meaningful and valuable as
we discussed a myriad of issues relating
to fraud, contestable claims, trust laws,
genetic predispositions, disease management, the mystery of subjective claims and
rehabilitation strategies.
My favourite feature of this session
would have to be the incredible quality of
the dialogue. We heard of real examples
www.claim.org Social Interaction
In addition to offering formal and professional education, the conference also provided opportunities for social interaction
with two dinners and a Live Show. The
menu choices were excellent. At dinner we
had the opportunity to get to know more
about each attendee and the speakers. In
between lunch we also got the opportunity
to visit and speak with Exhibitors.
Overall, the training received was a very
worthwhile and motivating experience. A
lot of things I learned in my formal and
hands-on experience have been redefined
and reinforced. Personally, the highlight of
the trip was the cogent restatement of the
view I held that there are no major disparities in the issues affecting the underwriting
and claims professions. The disparities observed were primarily in business practices,
mortality experiences and in the allowable
financial disclosure permitted from one
country to another and the legal framework
we operate in . It would be remiss of me
not to mention the pleasure of linking up
with a colleague from the Bahamas and
was updated on the whereabouts of other
colleagues once worked with in the early
1990’s.
I would like to take this opportunity to
formally thank you my Manager, Lorna
Salkey, and my AVP, Mrs Audrey Flowers
for allowing me the opportunity to attend
this seminar. I am happy too that our company recognises and support the value of
ongoing industry specific education and
research. 
2014 Roundtable Conference Calls
January 15.........................................................Fraud
March 19.................................................................DI
May 21..................................................................Law
July 16....................................................................Life
September 17................................................Health
November 19......................................Reinsurance
All of the Roundtable calls are Wednesdays at 2 pm in the Eastern Time Zone.
A limited amount of space is available.
Watch your inbox for reservation announcements from ICA Headquarters.
International Claim Association
Ica news
Page 4 DECEMBER 2013
ICA Committee Reports
EDUCATION COMMITTEE
The following students were recognized at the 2013 ICA Annual
Education Conference:
ALHC Student of the Year:
Sarah Kelly, Employers Reassurance Corporation
FLHC Student of the Year:
Michael Roy, Farmers New World Life
These awards are given annually to the students who complete their
ALHC or FLHC designation with the highest grade average on the four
ICA courses. In 2013, there were a total of 34 ALHC candidates, and
25 FLHC candidates. ICA would like to congratulate both Sarah and
Michael on their achievement.
ICA Third Quarter ALHC Recipients
Laura Harding, Manulife Financial
Beth Landers, Manulife Financial
Jacqueline Morgan, Pacific Services Canada Limited
Lacey Preston, Nationwide Financial
Nicole Raymond, Optimum Re
Sandi Sandfoss, Columbus Life Insurance Company
Eric Vincelette, Guardian Life Insurance Company
Rebecca L Warren, Kansas City Life Insurance
ICA Third Quarter FLHC Recipients
Judy Avants, Mutual Trust Financial Group
Julia Bonin, Nationwide Financial
Angela Ison, New York Life Insurance Company
Krissy Massey, Manulife Financial
Sheila Sandy, Principal Financial Group
ICA Third Quarter Course Completions
C1 Medical Aspects of Claims
Cortney Akerlind, Guardian Life Insurance Company
Karen Bachman, Glatfelter Insurance Group
Angela Brunner, Allegiance Benefit Plan Management, Inc.
Victoria Davis, Guardian Life Insurance Company
Lorrie DeLeon, Mass Mutual
Christi Godbey, Allegiance Benefit Plan Management, Inc.
Lee Cheng Goh, NTUC Income
Amanda Hemmen
Lisa Hoffman, Assurity Life Insurance Company
Woojo Kim, Samsung Life Insurance Company
Jennifer Krok, Guardian Life Insurance Company
Sun-ji Lee, Samsung Life Insurance Company
Michael Lemke, Disability Management Services, Inc.
David Lower, Nationwide Life Insurance Company
Yoko Markowitz
Stephen Mattson, CNO Financial Group
Ryan McCasland, Guardian Life Insurance Company
Barbara Miller, Western & Southern Financial Group
Christopher Neal, Ohio National Financial Services
Trung Nguyen, Manulife
www.claim.org Jean-Marie Sautrelle
Hiromi Schneider, AIG
Ya-wen Tsay, Nanshan Life
Susan Wagman, Glatfelter Insurance Group
Devin Whitney, Guardian Life Insurance Company
C2 Life and Health Insurance Law
Jennifer Aldrich, National Life Group
Timothy Catron, Dearborn National Life Insurance Company
Antonio Ferrante, Sun Life Financial
Hyelim Lee, Samsung Life Insurance Company
Michael Lemke, Disability Management Services, Inc.
Jennifer Letcher, Dearborn National Life Insurance Company
David Lower, Nationwide Life Insurance Company
Stephen Mattson, CNO Financial Group
Stephanie Pasky, CNO Financial Group
Kathleen Piel, Guardian Life Insurance Company
Elizabeth Staggs, Allegiance Benefit Plan Management, Inc.
Heidi Thompson, Western Southern Life Insurance
Anissa Vestich, AAA Life Insurance Company
Vincent Vuong, Pacific Guardian Life Insurance Co, Ltd.
C3 Claim Administration
Philip Evans, American General
Ian Gibson, Assurity Life Insurance Company
Christopher Hunte, The Insurance Corporation of Barbados Limited
Breanna Jennings
Joseph Johnson, Unum
David Lower, Nationwide Life Insurance Company
Stephen Mattson, CNO Financial Group
Allyson Nelson, Allegiance Benefit Plan Management, Inc.
Teri Niemeyer, Ohio National
Madalina Petrariu, Federal Life Insurance Company (Mutual)
Kathleen Piel, Guardian Life Insurance Company
Lloyd Quebrata, Sun Life Financial
Danielle Ruiz, ELCO Mutual Life and Annuity
Alanna Skoczen, New York Life Insurance Company
Sylvia Sotelo, Transamerica Life & Protection
Susan Wantland, AIG
C4 Managing Claim Department Operations
Beth Buschmann, AIG
Yuk Ki Chak
Andrea Harvey, AIG
David Lower, Nationwide Life Insurance Company
Stephen Mattson, CNO Financial Group
Michelle Page, AIG
Vivian Paul, AIG
Natcha Punnapot, ING Life Insurance
Katie Robinson, CNO Financial Group
Harriet Roy, Southern Farm Bureau Life Insurance
Heather Schultz, AIG
Younghwa Song, Samsung Life Insurance Company
Patricia Wilson, AIG
International Claim Association
Ica news
Page 5 DECEMBER 2013
ICA Committee
Reports
HEALTH COMMITTEE
On behalf of the ICA Health Committee,
we wish to thank each and every person
who attended our sessions. With so many
opportunities available, we realize it’s a hard
decision to make the choices that will best suit
your needs. A tremendous amount of work is
done by the presenters to prepare sessions that
will fit delegate’s needs. Speakers travel at their
own expense and often spend time outside of
their regular work responsibilities to bring
information to the delegates that is useful,
timely, and pertinent. A huge debt of gratitude
is due to these people for continuing to make
the ICA Annual Conference such a success.
A sincere THANK YOU from the 2013
Committee: Judy Bass, Co-Chair; Linda
Lemoine, Co-Chair, Antonio Ferrante, Denise
Ratliff, Sharon Angelino, Richard Dreitzer, and
Patrick Smith.
LAW COMMITTEE
2013 was a productive year for the ICA Law
Committee. In May committee member
Michael Bell led an ICA Member Roundtable
Conference Call titled Complex Life & Annuity
Beneficiary Issues: Who Are You Going To
Pay? Then in August the Law Committee
published its Black Letter Law Survey and Law
Committee report.
The Black Letter Law Survey is entitled
Funeral Service Provider As Life Insurance
Beneficiary, and examines the applicable legal
restrictions in the United States and Canada
governing the naming of funeral service
providers as beneficiaries in life insurance
policies. Thanks to the numerous committee
members who researched and provided content,
and to Robert Lesko for his work editing and
compiling this survey.
The 2013 Law Committee Report is entitled
Requirements For Establishing The Defense
Of Misrepresentation. It provides a survey and
brief legal analysis of the requirements in each
state for establishing the affirmative defense of
misrepresentation. Thanks to all the committee
members for their hard work researching and
drafting this report.
Committee members also presented the
following topics at the 2013 Annual Education
Conference: P.P.A.C.A. or Why You Should
Care About Obamacare (Phil Howe, Lauren
Welch and Richard Dreitzer); Complex Life
www.claim.org & Annuity Beneficiary Issues: Who Are You
Going To Pay? (Michael Bell); Communicating
Your Full and Fair Claim Review Under ERISA
(Norman Tolle, Lauren Welch, Rich Dreitzer,
and Ronda Tranter); Claims Handling in the
Social Media World (Cynthia Maskol joined by
Geoff Tong); and Unclaimed Property Litigation
(John Friederich, Doug Scullion, and Rob Lesko,
joined by Kemper in-house counsel Cheryl
Yakey). Law Committee members also joined
other ICA committee presentations this year,
with Marty Rosen, Leo Lagomasino and Ronda
Tranter joining Bob Dubiel of the Disability
Committee to present Mock Disputed Disability
Claim Mediation; and Rob Lesko joining Alayne
Russom of the Life Committee for a presentation
titled Fraternal Benefit Societies vs. Insurance
Companies. All of these presentations received
positive feedback and the Law Committee thanks
its members for their considerable time and
energy devoted to these projects.
Lastly, Ronda Tranter completed her final year
as Co-Chair of the Law Committee this year.
Ronda was an essential ingredient of the Law
Committee’s success over the past four years and
the Committee owes her a debt of gratitude for
her leadership and commitment. The co-chairs
in 2014 are John Friederich (Royal Neighbors of
America) and Doug Scullion (Dentons US LLP).
John, Doug, and the entire Law Committee look
forward to an equally productive 2014.
LIFE COMMITTEE
The Life Committee had a great turnout for the
2013 ICA Annual Education Conference. A shout
out to all Committee members for the hard work
that went into the workshops. Without volunteers
such as yourself, we could not continue this
tradition. We heard many positive comments
about the sessions this year. Now we have to
focus on how we are going to top 2013 for the
upcoming year. We are off to a great start for
2014. We have 25 returning members and 5
new members. We would like to welcome the
following people to the Life Committee: Joyce
Carville, Kenneth Hallden, Laura Matyja, Judy
Nafziger, and Nazim Shaw. Our committee
is made up of representatives from 20 Direct
Carriers, Reinsurers, Attorneys and a Vendor.
The Life Committee is currently Co-chaired
by Kim Houston and Johnny O’Mahony and
Ann Binzer. Due to the size of the committee,
we are continuing to have 3 co-chairs. We also
have several members of the Life Committee that
serve on other committees, such as the Executive
Committee, the Education Committee and the
DI Committee. We are truly looking forward to
another great year with the Life Committee and
the ICA. 
Committee Chairs
Administrative Management Committee
Karen M. Riendeau, FLHC, ARA, ACS
Munich American Reassurance Company
Annual Conference Team
Rebecca L. Huerta, FLHC, FLMI, AIRC, AAPA
Allianz Life Insurance Company of North America
Disability Committee
Robert S. Dubiel, ALHC
MetLife
Michael L. Flanders
Swiss Re Life & Health America, Inc.
Tracey Zinck, JD
Disability RMS
Education Committee
Bill Dolk, ALHC, FLMI, CLU, HIA
State Farm Insurance Companies
Charles D. Storm, ALHC, FLMI
Swiss Re Life & Health America Inc.
Executive Committee
Erin M. Worthington, CFE, FLMI, FLHC, ACS
Allstate Financial
Finance Committee
Kevin C. Glasgow, FLHC, FLMI
Munich American Reassurance Company
Fraud & Risk Management Committee
Suanne B. Musser, ALHC, ACS, FLMI
Swiss Re Life and Health America, Inc
Kerry L. Reyes
Manulife Financial
Health Committee
Judy Bass, ALHC, FLMI, ACS, HIA, MHP, LTCP
State Farm Insurance Companies
Antonio Ferrante, FLMI, ACS
Sun Life Financial
Law Committee
Douglas A. Scullion, JD
SNR Denton
John A. Friederich, JD, FLMI, ACS
Royal Neighbors of America
Life Committee
Ann S. Binzer, FLHC, CLU, ChFC, FALU, FLMI
The Cincinnati Life Insurance Company
Kim S. Houston, ALHC, ACS, AIAA
Protective Life Insurance Company
Johnny O’Mahony, AAPA
John Hancock Life Insurance Company
Marketing & Strategic Planning Committee
Chad Cunningham, FLMI, ACS
Munich American
Doris Erdman, ALHC, FLMI, ACS
Woodmen of the World
Nominating Committee
Doris Erdman, ALHC, FLMI, ACS
Woodmen of the World
Oversight Committee
Kevin Glasgow, FLHC, FLMI, ACS
Munich American Reassurance Company
Reinsurance Committee
Mary A. Beaufait, ACS, AIRC, ARA
Hannover Life Reassurance
Karen M. Riendeau, FLHC, ARA, ACS
Munich American Reassurance Company
International Claim Association
Ica news
Page 6 DECEMBER 2013
Congratulations to the 2014 ICA Executive Committee!
Officers
President
Kevin Glasgow, FLHC, FLMI
Munich American Reassurance Company
Executive Committee Members
Immediate
Past-President
Doris Erdman, ALHC, FLMI, ACS
Woodmen of the World Life Insurance
Society
James H. Brown, ALHC, HIA, ACS, FLMI
Swiss Re Life and Health America, Inc.
President-Elect
David W. Grannan, CFE
UnitedHealthcare
Marc Carlson, FLHC, FLMI, FALU
Modern Woodmen of America
Chad D. Cunningham, FLMI, ACS
Munich American Reassurance Company
Secretary
Rebecca L. Huerta, FLHC, FLMI, AAPA
Allianz Life Insurance Company of North America
Daniel A. Hepner
Ameritas Life Insurance Company
David Koth, ALHC, JD, CLU, ChFC, FLMI,
Treasurer
Lester L. Bohnert, ALHC, FLMI
Modern Woodmen of America
Craig Williamson, CFE, ALHC
Farmers New World Life Insurance
Chairperson
Erin M. Worthington, ALHC, ACS
All State Financial
www.claim.org Christopher M. Murphy
ICA Executive Director
CPCU
State Farm Insurance Companies
Darci Chuba
ICA Membership and Event Manager
International Claim Association
Ica news
Page 7 DECEMBER 2013
member
SPOT LIGHT
If you could only eat one food for the rest of your life what
would it be?
Lasagna. I’m like Garfield the cat…I could eat it morning, noon
and night!! It helps that I make a pretty mean lasagna!!
What is your favorite thing about being an ICA member?
It is absolutely the people! I am still friends with many of the
individuals I met at my very first ICA in 2005. I call them for
advice, suggestions, and just to catch up.
Name:
Brenda Dolan
Title: Life & Disability Income Claim Specialist
Company:
Federated Life Insurance
If you were stranded on a deserted island, what three items
would you like to have with you?
A large pot for water and cooking…a big box of dry matches….
and a big bowie knife. While I am no warrior princess, I think I
could take care of myself.
How did you get started in the insurance claim industry?
My husband pulled me kicking and screaming in the doors of
Federated Insurance. “Just talk to them.” he said. I immediately
flunked the typing test, but for some reason this lovely
gentleman asked me to join his department and I agreed to take
the job that same day. After 25 years in the business I can see it
was the best decision of my life.
Who is a mentor/role model for you in your life?
I know it sounds a bit cliché to say my mother, but she really is.
She grew up during the depression and her family was dirt poor.
She did not graduate from high school, but she always taught my
7 siblings and I to be honest, work hard and live up to our full
potential. She worked up until a few years ago when she fell and
fractured her arm pretty badly. She finally had to retire from her
second career at the age of 79.
If you could have dinner with one person (dead or alive) who
would it be?
John F Kennedy
What is your favorite restaurant?
Chino Latino - Caribbean food in Minneapolis’ Uptown district!
Fabulous food and service!!! I love, love, love it!
What is a hidden talent of yours?
I am an amazing baker! I started baking when I was a little girl
and have been doing it ever since. My specialty is bread.
www.claim.org Name one item on your bucket list. Ireland…land of legends, castles and pubs.
What is your favorite weekend activity?
Relaxing! Just taking each day as it comes and enjoying every
minute.
What is your favorite thing about the insurance claim
industry?
The industry is in a constant state of change; you get one thing
figured out and then something else changes. Change is the
biggest reason that we continue to send representatives to the
ICA Conferences and encourage them to study for their ICA
designations. You have to continuously educate yourself on the
hot topics in the industry.
International Claim Association
Ica news
Page 8 DECEMBER 2013
HEADQUARTERS
•
•
Darci Chuba
Membership & Event Manager
Thankfulness
I must have read at least 100 Facebook posts
over the past two months about what people
are thankful for. There were certainly a lot of
things thrown out there. From the traditional
posts about friends and family, to the
appreciation of the portability of a cupcake
(think about that for a minute, it really is
quite a convenient little cake!)
I’m typically not a follower, but I decided
to be one this month and write my own list
of things I’m thankful for. I’ll spare you the
details of my personal gratitude as we all
know I’m thankful for my friends and family,
as well as chapstick in the winter. Instead, I’ll
stick to all things ICA. In no particular order,
I’m thankful for:
•
My boss, Christopher M. Murphy. He’s
been helping me build my career since
I stumbled upon the job four years
ago. Not only is he a great teacher
but he’s often a supporter of my most
outrageous ideas; like writing this blog.
The Committee Members. I can’t
imagine what the educational workshop
schedule would look like at the Annual
Conference without their industry
knowledge and expertise. I’m thankful
that they are industry leaders and are
able keep me up to date on current
topics. I’m also thankful for their
recruiting skills whether it’s for new
committee members or conference
speakers, as well as their ability to keep
their committees on track throughout
the year.
The opportunity to meet people from
around the world. Every year the
Annual Conference seems to attract
more and more foreign attendees.
This is a testament to the quality of the
conference as word travels far when
there’s something worth creating a
buzz about! I also converse daily with
companies from around the globe in
regards to the education program. I’ve
learned a lot about other cultures and
look forward to one day visiting those
far away airports!
harsh criticism. Although I can’t control
the weather being cold and the NFL
football schedule, I can control things
like food selections, workshop topics
and the overall conference schedule.
Evaluations make me happy because
they create change and change is good.
There’s certainly a lot more that I’m thankful
for but I’m only allowed one page so I had
to keep it short and sweet! Obviously I’m
thankful from the employee standpoint, but,
I hope that you’re thankful for the benefits
you receive as a member.
Being that it’s the end of the year, this is
the perfect time for reflection. I encourage
everyone reading this to do two things: write
me an email to let me know what you’re
most thankful for as an ICA member (I don’t
care if it’s a paragraph, one sentence or one
word!) and make a list of things that you are
the most thankful for at your own job.
•
The Executive Committee. This isn’t just
a group of people whose names were
drawn out of a hat. Every person on the
Executive Committee has earned their
seat by being an active member in the
ICA, exceeding volunteer expectations,
and earning the respect of their peers to
be voted into this prestigious position.
I’m thankful for their knowledge,
direction and official voting powers as
I’m known to be indecisive.
Now I know you just read that and went,
“yea right!”, but have you ever sat down
and really thought about that? New Year’s
resolutions are just around the corner. In
addition to promising your running shoes a
few more miles on the trails, why not make
a professional resolution as well? Making
a list of what you’re thankful for at your
job can be your starting point. It will help
you realize everything that your job has to
offer and what you could/should be taking
more advantage of. For instance, does your
job offer continuing education? If so, take
advantage of it and enroll in an ICA course.
Ok, that was my last plug!
•
The Annual Conference Evaluations.
Feedback is critical to the success
of anything. I’m not only (selfishly)
thankful for those personal shout-outs/
pats on the back, I’m thankful for the
On behalf of Chris Murphy the ICA Executive
Director, the ICA Executive Committee,
and yours truly, I wish you the happiest of
Holidays and a wonderful new year (full of
personal and professional resolutions)! ]
Side Note: If your boss was reading this,
you’d definitely put him/her first too!
•
The opportunity to travel to new places.
I travel at least three times a year to
attend ICA meetings and each location
is better than the next. I will admit,
I have an obsession with exploring
different airports and my travel with ICA
feeds that obsession. And for that, I am
thankful!
www.claim.org International Claim Association
Ica news
Page 9 DECEMBER 2013
Insurers Retain Premiums as Damages
on Stranger-Originated Life Insurance
Schemes
FEATURE
ARTICLE
Maria G. Perri, Wilson Elser
Stranger-originated life insurance (STOLI), also referred to as
investor-originated life insurance, is a life insurance policy procured
for the benefit of an investor who has no insurable interest in the
insured, hence, a stranger. The insured is typically a senior citizen
who agrees to obtain a high-face-value life insurance policy with
the understanding that the beneficial interest in the policy will be
vested in the stranger. In exchange for his participation, the insured
typically receives between 1 percent and 5 percent of the face value
of the policy.
STOLI schemes fly in the face of public policy because the
intent is to circumvent insurable interest laws by creating wagering
contracts on the lives of the insureds. The stranger-owner wagers
that the premiums to be paid will be much less than the death
benefit that will ultimately be gained. Thus, strangers have a distinct
financial interest in the premature death of the insured.
Many insurers have identified and aggressively pursued rescission
of STOLI policies in recent years. Although rescissions typically
require the return of premiums to the insured, STOLI schemes often
involve multifaceted factual histories and layers of individuals
who may or may not be in pari delicto with the perpetrators of the
fraud that induced issuance of the policies. In light of such fraud,
the question then becomes who should be entitled to the return
of premiums? In STOLI schemes, insurers are clear victims and
in some cases have expended substantial amounts of resources in
administering the policies before discovering the fraud. Pursuant
to that reasoning, the courts have permitted insurers to retain the
premiums as special damages.
Case Examples
Recently, in PHL Variable Ins. Co. v. 2008 Christa Joseph
Irrevocable Trust, 2013 U.S. Dist. LEXIS 129657, 2013 WL
4829291 (Sept. 10, 2013 D. Minn.), the insurer issued a $10 million
policy on the life of an elderly, terminally ill woman. With a limited
understanding of English, she was tricked into signing the policy
application by a corrupt agency that engaged in “rampant” and
elaborate fraud schemes and grossly inflated the insured’s net
worth on the application, even going so far as to submit false tax
returns prepared by a nefarious CPA. The policy owner financed
the strikingly large initial premium and origination fees. The lender
then sold the loan to a subsidiary entity, which appeared to be a
holder in due course, not having any knowledge of the scheme.
The record made clear that an elaborate defrauding scheme had
taken place. Shortly before the insured’s death and within the twoyear contestability period, the insurer sought to rescind the policy
based on the fraudulent misrepresentations in the application.
www.claim.org The court recognized that the insurer’s ability to rescind the
policy based on misrepresentations fell between Minnesota’s
“statutory cracks” since the statue that governs misrepresentations
does not apply to life insurance and the statute that governs life
insurance policies does not address misrepresentations of wealth.
Consequently, the court determined that a misrepresentation of
financial wherewithal on a life insurance application is governed
by common law. At common law, an insurer has the right to void
a policy on the basis of material misrepresentations, whether
such misrepresentations are innocent or fraudulent. Rejecting an
argument that the insurer waived its right to rescind because it failed
to “adequately investigate” the information in the application, the
court held that the insurer performed due diligence in good faith to
attempt to verify the financial information in the application and any
such duty did not expand to include investigation of information
that is outright fraudulent. Lastly, the court held that the insurer was
entitled to retain all the premiums paid on the policy. The fact that
the premiums were funded by an alleged innocent third party was
of no consequence because the policy was procured by actual fraud.
In PHL Variable Ins. Co. v. The P. Bowie 2008 Irrevocable Trust,
718 F3d, 2013 U.S. App. LEXIS 9638 (1st Cir. 2013), an insurance
broker submitted an application seeking a $5 million life insurance
policy, falsely representing the insured’s profession, net worth
and income. The insurer employed a third-party inspector in its
underwriting process who contacted the insured and affirmed (1)
his excessively overstated net worth and (2) that the beneficiary of
the policy would be a trust.
Within the two-year contestability period, the insurer attempted
to contact the trust, the insured and the broker regarding the
information in the application, but received no response. In the
meantime, the insurer launched its own investigation and found
much of the information on the application had been falsified. The
insurer commenced suit seeking rescission of the policy based
on the fraudulent misrepresentations. The insurer also sought to
retain premiums as an offset against the damages it had suffered in
connection with the policy, including payments of commissions,
legal fees, underwriting fees and administration/servicing of the
policy.
Discovery showed that the trust, by and through its attorney,
was the mechanism for accomplishing the insurance fraud. The
trust agreed to rescission of the policy and demanded immediate
return of all premiums.
Although the insurer did not specifically plead fraud, the court
determined that fraud was an issue pertinent to imposing a proper
remedy and, therefore, analyzed the record in light of common
law fraud. The court found that the trust had unclean hands in the
International Claim Association
Ica news
Page 10 DECEMBER 2013
procurement of the policy, and held that “the law would not allow
[the trust] to commit an intentional and calculated fraud upon [the
insurer] and walk away unscathed while the innocent party bears
the financial burden of the fraud.”
Holding that the insurer here was the clear and innocent victim,
the First Circuit noted that “when an insurance company rescinds
on grounds of fraud, it may, before returning premiums, offset
losses incurred on the policy which was obtained by fraud.” If the
court were to order premiums returned to the trust, the trust would
be unfairly enriched due to its own fraud and the insurer would not
be in the same position it was pre-policy. The court further held
that the trust’s fraudulent conduct should not be rewarded and that
the insurer was not properly protected by the policy’s rescission
because the insurer incurred damages that prevented it from being
returned to its status quo. Based on this reasoning, the insurer’s
right to retain the premiums paid was upheld as special damages.
Thank you to our
2013 ICA Annual Education
Conference Exhibitors & Sponsors
Sponsors:
Allsup, Inc.
Munich Re
Social Security Advocates for the Disabled
Tahl & Associates
Unclaimed Assets
Exhibitors:
Summary
The law in STOLI continues to develop. These two decisions
exemplify the court’s prudence to punish those involved in STOLI
schemes and to put the parties back into their pre-contractual
positions, which is good news for life insurers. This trend
demonstrates the courts’ flexible and dynamic application of the
law in STOLI matters and its refusal to be bound by hard-andfast rescission rules. These holdings ensure a monetary risk to
the promoters of STOLI schemes, providing notice to potential
perpetrators that their once risk-free schemes now have much
more at stake. Hopefully, other courts will follow suit so that these
decisions act as a future deterrent to other fraudulent investors. 
REHABILITATION ASSISTANCE STRATEGIES:
RETURNING THE MATURE WORKER, Age 55 - 64,
TO EMPLOYMENT
by Paul R. Kirk, MA, CRC, CCM, LPC, CEAS
The United States workforce is rapidly aging as the boomer
generation reaches maturity. By the early 2000s, workers within the
United States labor force aged 55 to 64 made up 62.9 percent of the
employment scenario and this percentage is quickly rising. Disability
claims are reflecting this trend and advanced age is more of an issue
than ever before in the assessment of new disability claims. For
some disability insurers, particularly on closed blocks, advanced age
comprises a substantial share of active claims.
This paper proposes a comprehensive strategy for working with
individuals who have the capacity to return to work and may fall into
the category of the mature worker.
To view complete paper click here.
www.claim.org Advantage 2000 Consultants
Allsup, Inc.
ALU/AHOU
APS Workflow
Archangel Investigations & Protection Inc.
The Berwyn Group
Bonnamy & Associates, L.L.C.
Cincom
Claims Bureau USA
Claims Verification Inc. (CVI)
ClaimVantage, Inc.
Data Dimensions
DataBank
Diligence International Group
Doherty, Cella, Keane LLP
Eastern Claims Conference
FastTrack
Fineos
First Services
GlobalOptions
HUB Enterprises, Inc.
ICS Merrill
Integrated Benefits, Inc.
Intertel, Inc.
Jacobson
Keane
Legal Files Software, Inc.
LexisNexis
Marshall Investigative Group, Inc.
MIB
MLS Group of Companies, Inc.
Munich Re
The Northern Trust Company
ObituaryData.com
PhotoFax, Inc.
Polaris Financial Technology
Research Service Bureau
Ryan
Social Security Advocates for the Disabled
Source Access
Swiss Re
Worldwide Resources, Inc.
International Claim Association
Ica news
Page 11 DECEMBER 2013
Quality Assurance and the Claims Process
QUALITY
ASSURANCE
Bob Tully, ALHC, HIA, DIA
What is Quality Assurance?
The term quality assurance (QA) describes
the process of enforcing quality control
standards and working to improve the
processes that are used in claims operations
and adjudication. When quality assurance is
well implemented, management should see
progressive improvement in production,
performance, and customer satisfaction.
Quality assurance functions as a
“voice” for the user, a reminder that the
performance of the team is linked to the
quality of the product they produce. QA is
the gatekeeper to a quality user experience.
QA has also been described as an effective
way to avoid complacency, or highlight
slowly deteriorating conditions, especially
when QA focuses not just on compliance
but effectiveness.
Quality assurance is an essential management tool used to verify objective evidence of processes, to assess how successfully processes have been implemented, for
judging the effectiveness of achieving any
defined target levels, or to provide evidence
concerning reduction and elimination of
problem areas. For any organization’s
benefit, quality assurance should not only
report issues requiring corrective actions,
but also highlight areas of good practice.
As a result, other departments may share
information and amend their working
practices, also contributing to continual
improvement.
Many companies outsource processes
and/or procedures to keep costs down,
or because they do not have the overall
expertise to handle certain functions. In
these situations, it is imperative that the
ceding company have a QA strategy in
place to ensure their customers and clients
receive the highest standards of service,
as well as the assurance that the work
performed in the name of the direct writer is
accurate and timely. Otherwise, the ceding
company’s reputation, not to mention their
profitability, may be compromised by substandard work performed by the vendor
hired to perform the assigned task.
www.claim.org If your company is limited by staff size
to what you can accept responsibility for,
document those limits. For example, if you
can’t test data on a routine basis, announce
that fact whenever you provide test results
for the quality of the team. Even the most
experienced team will experience problems
and failures, so a good quality assurance
program will identify these issues and
recommend corrections.
Focus on Improving the Overall
Process
The key to quality assurance is understanding the emphasis on process:
•
•
Quality control focuses on what
comes out of the creative process
(development, published guidelines,
whatever term you prefer that best
describes the process).
Quality assurance focuses on what
goes into the creative process, as well
as on the process itself, with a goal
of improving the quality of output by
improving all implemented guidelines
and procedures.
Quality assurance looks beyond the
structured test cases used by quality control
because these test cases may be limited,
and focuses on more than a team’s ability
to meet a specific benchmark. The goals of
QA are to make a team better by
1. Detecting problem areas and/or trends
for the team to eliminate via corrective
action, or with additional training
2. Identifying benchmarks (metrics) that
may need to be modified or refined
by management for more precise
measurements of claims quality
3. Isolating overall gaps in process and/or
procedure so that future audits achieve
a greater consistency of positive
feedback.
Following any quality assurance testing,
perform a postmortem analysis: review
the data outcomes (issues, problems, high,
medium, low by impact). Identify and
distinguish the issues needing immediate
correction or could be made more efficient,
from those acknowledged as a best practice.
Focus on Tracking Problems
Quality assurance involves a closer involvement with defects and their resolution. During the quality control process,
problems discovered are typically returned
to the staff “owning” the work for correction. Once the staff corrects the affected
claims, the QA team can re-examine them
to validate the accuracy of each correction.
Quality programs are designed to
catch problems by reviewing a sufficient
sampling of claims representing a mix of
the overall products handled by the claims
team. Testing may also find areas for
improvement that may not be defects, but
rather opportunities; user input is a great
source for uncovering such “opportunities”.
It is advisable to document identified
findings in a secure and confidential format
and location, perhaps within a supporting
QA database. Such findings might include
1) agreement from unit management that
an issue found via QA exists; 2) an action
plan to correct each reported issue, and 3)
a timeline to complete each corrective action. Plans for correcting identified issues
might be referenced in the final QA report,
if one is produced. In addition, the QA team
should monitor a unit’s progress toward
resolving each issue. Finally, maintaining
a database of quality assurance findings
assures a suitable starting point for future
claims reviews. 
Bob Tully is a member of the ICA’s
Reinsurance Committee. Please direct
any questions or comments regarding this
article to Robert_Tully@Swissre.com
International Claim Association
Ica news
Page 12 DECEMBER 2013
Advertising & Sponsorship Rates
Newsletter, Website & Roundtable Conference Calls
ICA Newsletter Ad
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www.claim.org
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SIGNATURE
Darci Chuba • dchuba@claim.org
Chris Murphy • cmurphy@claim.org
www.claim.org International Claim Association
Ica news
Page 13 DECEMBER 2013
TAKE CONTROL
OF YOUR OWN FUTURE.
Arm yourself and your staff with education.
State Anti-Fraud Training
Priced Exclusively for ICA Members!
Comply with state regulations for anti-fraud training and
meet company mandates while enhancing the success of
your fraud program.
Keep your company and staff current and trained on all
state mandated anti-fraud training regulations.
Additionally, a course on California Fair Claims Training is
available to all ICA members through NATG.
Who Should TAke ThiS courSe?
• New hires (within first 90 days)
• Claims staff
• SIU staff
• Other staff as required by state regulations
• Any employee that requires annual fraud training
A+
ABouT
The courSe:
4 Meets requirements for
all 18 state mandated fraud
training requirements.
4 Customized to your
company SIU requirements
and will include your company
SIU manuals.
MeMBer PriciNG:
$45 to $100 per exam depending on member
company volume.
eNroll NoW.
Click on the NATG logo
on the ICA home page to learn how to register.
www.claim.org 4 Convenient, 2-hour course,
available on-line at anytime.
4 Five different versions of
the training available, Life/
Disability, Healthcare, Workers’
Comp., Underwriting/Agent
and P&C.
4 Has passed several audits by
the State of California.
4 Each student provided with
a certificate of completion.
Ica
International Claim Association
LEADING THE WAY IN CLAIM EXCELLENCE
®
1155 15th Street, NW
Suite 500
Washington, DC 20005
202 452-0143 voice
202 530-0659 fax
www.claim.org
International Claim Association